House Prices and Macroprudential Policies: Evidence from City-level Data in India / Bhupal Singh.

Format:

Book

Government document

Author/Creator:

Singh, Bhupal.

International Monetary Fund, author, issuing body.

Series:

IMF Working Papers; Working Paper ; No. 2020/291

IMF Working Papers

Language:

English

Subjects (All):

Monetary policy--Econometric models.

Monetary policy.

Monetary policy--Decision making.

Physical Description:

1 online resource (46 pages)

Other Title:

House Prices and Macroprudential Policies

Place of Publication:

Washington, D.C. : International Monetary Fund, 2020.

Summary:

This paper examines the efficacy of macroprudential policies in addressing housing prices in a developing country while underscoring the importance of fundamental factors. The estimated models using city-level data for India suggest a strong influence of fundamental factors in driving housing prices. There is compelling evidence of the effectiveness of macroprudential tools viz., Loan-to-value (LTV) ratio, risk weights, and provisioning requirements, in influencing housing price movements. A granular analysis suggests an even stronger impact on housing prices of a change in the regulatory LTV ratio for large-sized vis-à-vis small-sized mortgages, which buttresses their potency in fighting house price speculations. A tightening of the risk weights on the housing assets of banks causes significant downward pressure on house prices. Similarly, regulatory changes in standard asset provisioning on housing loans also influence house prices.

Contents:

Front Matter

House Prices and Macroprudential Policies: Evidence from City-level Data in India.

Notes:

Description based on print version record.

ISBN:

9781513565682

1513565680